Tim Temple, a Republican with 20 years of experience in the insurance business, will be Louisiana’s next insurance commissioner after the only other candidate, Rich Weaver, dropped out of the race. Temple will succeed Jim Donelon, who has held the position since 2006 and chose not to run for another term. However, Temple will inherit a challenging situation as the homeowners’ insurance market in south Louisiana is in turmoil due to the impact of hurricanes in 2020 and 2021, leading to skyrocketing insurance rates. Additionally, car and commercial truck owners are also facing high insurance rates, despite legislative efforts to reduce them.
The past two years have seen nine property insurance companies become insolvent in Louisiana, five of which were based in Florida, which has also been dealing with an insurance crisis. As a result, homeowners, especially those living in coastal areas, are struggling with the increasing insurance rates. At the same time, car insurance rates in the state remain among the highest in the country, despite legislative measures aimed at reducing them.
One of the major issues in this election cycle is how to make insurance more affordable for all Louisiana residents. Temple disagrees with Donelon and vows to make it easier for insurance companies to set homeowner rates, believing that increased competition will lead to lower premiums. However, the issue of whether insurance companies should be allowed to drop homeowners who have been with them for the previous three years remains unresolved.
Donelon has proposed a plan that would provide grants to insurance companies to encourage them to write policies in the state, with the goal of reducing reliance on Louisiana Citizens Property Insurance Corp., the state insurer of last resort. The plan requires the companies to match the state grant and write new premiums worth twice the amount of the grant plus matching funds. Temple, on the other hand, praised the Legislature’s approval of $30 million in grants to fortify homes, with the hope of lowering insurance rates.
Another important decision that Donelon is facing is whether to approve the sale of Blue Cross Blue Shield of Louisiana, the state’s largest insurer, to a company based in Indiana. This decision will demonstrate the extent of the commissioner’s authority and its impact on the insurance landscape in the state.
Temple, who runs a family-owned investment management business in Baton Rouge, is from DeRidder and has a background in the insurance industry. His father, Aubrey Temple, was a long-time insurance company owner and chair of the Louisiana Workers’ Compensation Corporation. Weaver, his only competitor, faced overwhelming odds and eventually dropped out of the race due to financial constraints and potential disqualification claims.
Overall, Temple’s election as the next insurance commissioner of Louisiana comes at a critical time for the state’s insurance market, as he will be tasked with addressing the issues faced by homeowners and car owners. His approach to encouraging competition and affordability will be closely watched, as well as his stance on important decisions such as the potential sale of Blue Cross Blue Shield of Louisiana.
Original Story at www.nola.com – 2023-08-16 19:32:00
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